Whitepaper on Material Yield Variance Sub-System

Transcription

1 Whitepaper on Material Yield Variance Sub-System Header Fields Create a multi-divisional material variance tracking system One set of "source" code Standard terminology across divisions Support KPI - "key performance indicators" QAD Setup Items and products Sites Item site differential Formula's and scrap percentages Cost management Production lines Items and Products Unique id that describes a finished good, produced ingredient, batch item, by-product or package material How do we classify the item? Classifying the Item Product Line - User defined left open to divisions Group - User defined left open to division Type - "FNGD, PACK, INGR,PDIN,BYPD," last four digits "customized" by division (e.g. PACKCAPS) Sites A unique code to identify a logical or physical entity Physical site - used to track inventory -- production activities occur Logical site - a code used to identify standards for routing's, formula's and costs

2 Item Site Differential An item may have different formulas, routings and costs per site Defines the differences between item-site planning maintenance, and item-site cost maintenance Allows for tracking of "standards" and comparison analysis Formulas Set-up formulas Attach scrap percentages to formulas Attach formula to item and site Create "N" number of formulas Comparison reporting Cost Management Create logical costing sites Enter costs for different sites Cost set to cost set copy Rollup costs Yield reporting for cost sets Yield Setup Yield component Yield parent Site groupings Yield Component An item that is captured by the yield calculation to be used later in the reporting of actual usage vs. standard Components can be set up globally by product line, item type and group, e.g. all ingredients are yield components Yield Parent An item which is used to drive standard production credit for all lowest level yield components or lower level yield parents Yield parents may be set up by product line, group and item types, e.g. all FNGD = yield parents Site Grouping's Site Grouping - A set of QAD sites linked together for the purpose of yield reporting Have two facilities - have one yield report Facilitate DCS Interface

3 Standard Yield Terminology Ideal standard usage (standard usage w/o scrap) Standard usage (standard usage w/ scrap) Ideal operational usage (operational usage w/o scrap) Operational usage (operational usage w/ scrap) Actual usage (ISS-WO) Actual usage (inventory variances, CYC-CNT) Standard Yield Terminology Continued... Theoretical variance - (ideal standard - actual) Formula variance - (standard - operational) Operational variance - (operational - actual) Opportunity variance - (ideal operational - actual) Logical Yield Dataset Production site group - list of sites where system searches for production (RCT-WO's) Issue site group - list of sites where system searches for usage (ISS-WO') inventory variances Standard site - the site the yield calculation uses to determine which standard formula to use Operational site - the site the yield calculation uses to determine which formulas to use for capturing operational usages and support variances to standard Yield Control File Setup defaults for yield execution Setup defaults for yield reporting QAD Execution Work order release Work order receipt/backflush Cycle counting Work Order Receipt/Backflush Driver screen to produce necessary inventory transactions in QAD RCT-WO - production credit ISS-WO- actual usage Modify backflush Include scrap percentage in backflush Production adjustments, backflush adjustments

4 Cycle Counting Used to report inventory variances that are not related to the production process Types: recount, initial, cycle, tag User defines which types yield will "pick up" Yield Execution Calculate scrap Automatic allocation Manual allocation Calculate Standard / Operational Usages System "pulls together" all "RCT-WO" transactions from production site group that are classified as a yield parent and uses that number to extend the standard and operational formulas Calculate Actual Usage System "Pulls Together" all ISS-WO transactions from issue site group and matches them up to a corresponding yield parent Can ignore yield parent logic and post to direct repetitive labor parent i.e. "batches and produced ingredients" Automatic Allocation System "pulls together" all cycle count activity and allocates the inventory variances to those "yield parents" in which actual usage was reported against during the time period All items in which no "ISS-WO's" transactions occurred during the time period will be flagged to be manually allocated Automatic Allocation Flags can be switched to modify the behavior of automatic allocation in determining which items need to be manually allocated Variances are allocated based upon percentages of "ISS-WO's" that are backflushed against production Manual Allocation The user determines which production item number will receive the variance that occurred during the time period Items can be allocated by a percentage basis and the system will recommend certain items that will be used in the process

5 Yield Procedures (Sample Flow) Calculate scrap Automatic allocation Manual allocation Verify "yield numbers" If yield numbers do not match check yield setup, site groups, yield flags Reporting Item usage summary Yield reporting Item Usage Summary Detail Breakdown of Transactions in QAD for certain time period Summary yield information for each item Calculates actual usage and compares to actual usage summarized by yield calculation If no errors then yield system performed correctly Benefits of Yield Dataset Multiple comparisons What if s Simulations Flexibility in reporting Yield Reporting Daily, weekly, monthly, TYD Flexibility User creativity Control file driven Product line (department business unit) Group (flavors, colors, sizes) Item type (ingredient, packaging, by-products, produced ingredient) Wild card reporting, multiple sorting